Your Question! - Information Technology

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what was presented in the Book.
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the class.
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The Game Board!

A.
B.
A firm can be said to have competitive
advantage when it has higher stock market
valuations than its competitors.
TRUE
FALSE

A.
B.
The competitive forces model was created for
today's digital firm.
TRUE
FALSE

A.
B.
Customers are one of the competitive forces
that affect an organization's ability to
compete.
TRUE
FALSE

A.
B.
A transparent marketplace means that there
is high product differentiation.
TRUE
FALSE

A.
B.
Studies show that about half of a business
firm's profits can be explained by alignment
of IT with business.
TRUE
FALSE

A.
B.
In an efficient customer response system, digital
answering systems are used to monitor and
respond to customer inquiries.
TRUE
FALSE

A.
B.
In the strategy of product differentiation,
information systems are used to enable new
products and services.
TRUE
FALSE

A.
B.
Mass customization requires different
production resources from mass production.
TRUE
FALSE

A.
B.
Strong linkages to customers and suppliers
increase switching costs.
TRUE
FALSE

A.
B.
The effect of the Internet has been to raise
bargaining power over suppliers.
TRUE
FALSE

A.
B.
In the age of the Internet, Porter's traditional
competitive forces model is still at work, but
competitive rivalry has become much more
intense.
TRUE
FALSE

A.
B.
In the value chain model, primary activities
are most directly related to the production
and distribution of the firm's products and
services that create value for the customer.
TRUE
FALSE

A.
B.
C.
D.
Which of the following is not one of the
competitive forces of Porter's model?
Suppliers
Other competitors
External environment
Customers.

A.
B.
C.
D.
A manufacturer of deep-sea oil rigs may be
least concerned about which of these
marketplace forces?
Product differentiation
Traditional competitors
Low number of suppliers
New market entrants

A.
B.
C.
D.
Which of the following industries has
the lowest barrier to entry?
Automotive
Computer-chip
Restaurant
Airline

A.
B.
C.
D.
A substitute product of most concern for a cable
TV distributor is:
satellite TV.
broadcast TV.
satellite radio.
the Internet.

A.
B.
C.
D.
Which of the following can force a business
and its competitors to compete on price
alone?
High product differentiation
Poor process efficiency
Demand control
Transparent marketplace

A.
B.
C.
D.
A firm can exercise greater control over its
suppliers by having:
more suppliers.
fewer suppliers.
global suppliers.
local suppliers.

A.
B.
C.
D.
Wal-Mart's continuous replenishment
system allows it to:
provide mass customization.
provide an efficient customer response system.
strengthen customer intimacy.
achieve economy of scale.

A.
B.
C.
D.
When a firm provides a specialized product or
service for a narrow target market better
than competitors, they are using a:
product differentiation strategy.
market niche strategy.
mass customization strategy.
process efficiency strategy.

A.
B.
C.
D.
________ is the ability to offer individually
tailored products or services using the same
production resources as bulk production.
Mass customization
Size customization
Personalization
Demand customization

A.
B.
C.
D.
An information system can enable a company
to focus on a market niche through:
complex trend forecasting.
tailoring products to the client.
intensive product trend analysis.
intensive customer data analysis.

A.
B.
C.
D.
Hilton Hotels' use of customer information
software to identify the most profitable
customers to direct services to is an example of
using information systems to:
strengthen customer intimacy.
differentiate their service.
focus on market niche.
increase efficiency.

A.
B.
C.
D.
Which industries did the first wave of ecommerce transform?
Air travel, books, bill payments
Air travel, books, music
Real estate, air travel, books
Real estate, books, bill payments

A.
B.
C.
D.
To what competitive force did the printed
encyclopedia industry succumb?
Positioning and rivalry among competitors
Low cost of entry
Substitute products or services
Customer's bargaining power

Internet technology:
makes it easy for rivals to compete on price alone.
imposes a significant cost of entry, due to
infrastructure requirements.
C. increases the difference between competitors
because of the wide availability of information.
D. makes it easy to sustain operational advantages.
A.
B.

The Internet raises the bargaining power of
customers by:
creating new opportunities for building loyal
customer bases.
B. making more products available.
C. making information available to everyone.
D. lowering transaction costs.
A.

A.
B.
C.
D.
The value chain model:
categorizes five related advantages for adding value to a firm's
products or services.
sees the supply chain as the primary activity for adding value.
categorizes four basic strategies a firm can use to enhance its value
chain.
helps a firm identify points at which information technology can most
effectively to enhance its competitive position.

The primary activities of a firm include:
inbound logistics, operations, outbound logistics,
sales and marketing, and service.
B. inbound logistics, operations, outbound logistics,
technology, and service.
C. procurement, inbound logistics, operations,
technology, and outbound logistics.
D. procurement, operations, technology, sales and
marketing, and service.
A.

A.
B.
C.
D.
The most successful solutions or methods for
achieving a business objective are called:
core processes.
best processes.
benchmarks.
best practices.

A firm's value chain is linked to the:
value webs of its industry.
value chains of its suppliers, distributors, and
customers.
C. value webs of its suppliers and distributors.
D. value chains of its suppliers and customers.
A.
B.

A.
B.
C.
D.
) A ________ is a collection of independent
firms that use information technology to
coordinate their value chains to produce a
product or service for a market collectively.
value chain
business network
value web
consortia

How are information systems used at the
industry level to achieve strategic advantage?
By building industry-wide, IT-supported consortia and
symposia
B. By raising the bargaining power of suppliers
C. By encouraging the entry of new competitors
D. By enforcing standards that reduce the differences
between competitors
A.

An information system can enhance core
competencies by:
providing better reporting facilities.
creating educational opportunities for management.
allowing operational employees to interact with
management.
D. encouraging the sharing of knowledge across
business units.
A.
B.
C.

A.
B.
C.
D.
The more any given resource is applied to
production, the lower the marginal gain in
output, until a point is reached where the
additional inputs produce no additional
output is referred to as:
the point of no return.
the law of diminishing returns.
supply and demand.
Inelasticity.
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
Network economics:
applies the law of diminishing returns to
communities of users.
B. applies traditional economics to networked users.
C. sees the cost of adding new members as
inconsequential.
D. balances the high cost of adding new members to
a community against the lower cost of using
network infrastructure.
A.

A.
B.
C.
D.
In network economics, the value of a
commercial software vendor's software
products:
increases as more people use them.
decreases as more people use them.
increases due to higher marginal gain in output.
decreases according to the law of diminishing
returns.

A virtual company:
uses the capabilities of other companies without being
physically tied to those companies.
B. uses Internet technology to maintain a virtual
storefront.
C. uses Internet technology to maintain a networked
community of users.
D. provides entirely Internet-driven services, or virtual
products.
A.

Globalization allows:
information systems to enhance core
competencies.
B. businesses to sell their products on a global scale.
C. businesses to use the capabilities of other
companies without being physically tied to those
companies.
D. information systems to more fully utilize Internet
capabilities.
A.

A.
B.
C.
D.
The greatest impact the Internet has had on
globalization is in lowering the costs of:
labor.
telecommunications.
network infrastructure.
entry to global-scale operations.

A.
B.
C.
D.
The ________ strategy concentrates financial
management and control out of a central
home base while decentralizing production,
sales, and marketing operations to units in
other countries.
domestic exporter
multinational
franchise
transnational

A.
B.
C.
D.
The ________ strategy is characterized by heavy
centralization of corporate activities in the home
country of origin.
domestic exporter
multinational
franchise
transnational

A.
B.
C.
D.
________ systems are those in which each
foreign unit designs its own unique
information system solutions.
Centralized
Decentralized
Duplicated
Networked

A.
B.
C.
D.
________ systems are those in which
development occurs at the home base but
operations are handed over to autonomous
units in foreign locations.
Centralized
Decentralized
Duplicated
Networked

A.
B.
C.
D.
________ systems are those in which systems
development and operation occur totally at
the domestic home base.
Centralized
Decentralized
Duplicated
Networked

A.
B.
C.
D.
________ typically develop a single
information system, usually at the home
base, and then replicate it around the world.
Domestic exporters
Multinational firms
Franchisers
Transnational firms

A.
B.
C.
D.
Seeing quality as the responsibility of all people
and functions in an organization is central to the
concept of:
Six sigma.
TQM.
quality control.
cycle time reduction.

A.
B.
C.
D.
Which of the following is not a benefit of
implementing CAD systems?
Reducing the time spent on completing a design
Reducing the time spent on benchmarking
Ability to review designs for errors prior to production
Ability to make changes to digital models without
building physical prototypes

A.
B.
C.
D.
Streamlining the steps taken to complete a
business task more efficiently is called:
workflow reengineering.
business process management.
business process reengineering.
workflow management.

Many reengineering projects do not achieve
breakthrough gains in performance because:
A.
B.
organizational change is difficult to manage.
it is difficult to streamline many business
processes.
workflow management is difficult to achieve.
document management is difficult to achieve.
C.
D.

Benchmarking:
compares the efficiency and effectiveness of your
business processes against strict standards.
B. allows industry participants to develop industrywide standards.
C. is used to measure the speed and responsiveness
of information technology.
D. synchronizes the business processes of customers,
suppliers, and trading partners.
A.

A.
B.
Business process reengineering is the radical
redesign of business processes.
TRUE
FALSE

A.
B.
The more people that use Microsoft Office
software and related products, the greater its
value.
TRUE
FALSE

A.
B.
The value chain model classifies all company
activities as either primary or support.
TRUE
FALSE
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